Health Care Deal News: Spotlight on Medical Devices - June 2012

Life sciences company Agilent Technologies (NYSE: A) recently acquired Dako Denmark A/S, a leader in tissue-based cancer diagnostics, from the private equity fund EQT. Dako’s products are supplied to anatomic pathology labs and generate annual revenue of $326.6 million and EBITDA of $10.3 million. The price is DKK 12.8 billion ($2.2 billion). This acquisition gives Agilent a set of strong brands in the advanced staining markets. Products include antibodies, reagents, scientific instruments and software. EQT originally acquired Dako in 2007 for DKK 7.25 billion ($1.246 billion).

Royal DSM (Euronext: DSM KON), a Dutch company that operates in the life sciences and material sciences industries, recently announced plans to acquire Kensey Nash (NASDAQ: KNSY), a company based in Exton, Pennsylvania that develops and makes absorbable biomaterials-based products for the cardiology, orthopedics, spine and wound care markets. Under terms of the deal, DSM is offering $38.50 in cash for each share of KNSY common stock; this yields a purchase price of $360.0 million. The buyer’s bid offers KNSY shareholders a 33% premium over the stock’s prior-day price. Valued at 4.3x revenue, the deal strengthens DSM’s biomedical business. This acquisition is to take place in two parts: the tender offer is expected to be completed by the end of June 2012, followed by DSM acquiring the remaining outstanding shares through a merger.

Institut Straumann AG (SIX: STMN), a Swiss company that provides implant dentistry and dental tissue regeneration solutions, is acquiring Neodent, a Brazilian company that manufactures dental implants for cosmetic surgery and, in 2011, generated revenue of approximately $84.0 million. Under terms of the deal, STMN will pay approximately $277.0 million. This gives it an initial stake of 49% plus an option to raise its stake to 100% over the next three years. Neodent has approximately one-third of the Brazilian market, where demand for cosmetic surgery is strong. This acquisition gives the buyer a strong presence in that market, and offsets the sluggish market in Europe as the continent marches towards austerity..............Want to read more? Click here for a free trial to The Health Care M&A Information Source and download the current issue today